Q1 2024 Waters Corp Earnings Call Transcript
Key Points
- Waters Corp reported sales at the high end of their guidance for Q1 2024, demonstrating strong execution despite cautious customer spending.
- Non-GAAP earnings per share exceeded expectations, coming in at $2.21, which was above the company's guidance.
- The company achieved a gross margin expansion of 40 basis points to 58.9%, and an operating margin expansion of 20 basis points, reflecting effective operational management.
- Waters Corp generated strong free cash flow of USD 234 million in Q1, representing 37% of sales, highlighting robust financial health.
- The company launched several new products, including the Alliance iS Bio and GTxResolve Premier columns, enhancing its portfolio and addressing high-growth market areas.
- Reported a year-over-year decline in sales by 7% as reported and 9% in organic constant currency terms, indicating market challenges.
- Sales in China declined by nearly 30%, although this was better than expected, it still reflects significant market weakness in the region.
- Instrument sales overall declined by 25%, with mass spectrometry particularly weak due to tough prior year comparisons and reduced global funding.
- The academic and government sectors saw a significant decline of 30% in sales, influenced by high comparison figures from previous stimulus impacts.
- Despite maintaining full-year guidance, the company faces uncertainties in market conditions, particularly in China, which could affect future performance.
Good morning. Welcome to the Waters Corporation First Quarter 2024 Financial Results Conference Call. (Operator Instructions) This call is being recorded. If anyone has objections, please disconnect at this time. It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. Please go ahead, sir.
Thank you, Ivy. Good morning, everyone, and welcome to the Waters Corporation First Quarter Earnings Call. Today, I'm joined by Dr. Udit Batra, Waters' President and Chief Executive Officer; and Amol Chaubal, Waters' Senior Vice President and Chief Financial Officer. Before we begin, I will cover the cautionary language. I would like to first point out that our earnings release and the slide presentation supplementing today's call are available on the Investor Relations section of our website. In this conference call, we will make various forward-looking statements regarding future events or future financial performance of the company.
In particular, we will provide guidance
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